Yesterday saw a historic day for Real Estate Auctions in New Zealand. What is said to be this countries largest ever property auction event Ray White of Auckland auctioned 100 properties at one event. As David Leggott said in his blog the event was major. With models, balloons and a DJ involved there was more than just properties on the show case.
There were properties of all sizes and shapes and of all ranges of price tags, the range was from $200,000 to 2 Million dollars. The event held at the Telstra Clear Pacific Events centre created a huge amount of interest and made buyers turn out in their droves.
On the day 8 sold under the hammer and 15 were negotiated after the auction. And a number were sold prior
to auction. In an auction you must remember that it is a 3 stage process. You have the marketing period, the auction itself and then after the auction with negotiations with interested parties. Quite often buyers cant bid at auction. To bid at auction you need to be unconditional in all respects. Some buyers aren’t so they wait to get the chance to voice their position after the auction. This gives added pressure to the people who can bid to bid so that they don’t have as much competition.
It will be interesting to see over the coming week how the properties stack up in regards to sales. There will be many busy sales consultants in the Auckland Ray White group at the moment.
On TV3 news tonight there was a story Falling prices make it a good time to buy a home. In this article they say that property is the most affordable it has been since May 2006 and it now costs 68% of the average wage to service the average mortgage. Prices of property are down but people are still not buying. Bryan Thompson says on his blog that people are hearing conflicting messages in the media and are uncertain whether it is a good time to buy now or whether to wait.
For someone looking to buy now there are some great deals out there. The people that are selling by in large are motivated to sell and move on. My personal observation is that I see quite a few buyers sitting on the fence and waiting to see what happens, but they are there ready to make a move. In the past few weeks there have been some very positive signals from the Housing market in New Zealand and it will be interesting to see how these pan out with home buyers. Interest rates have fallen, BNZ now offer a 6 month fixed rate of 6.99%, Fuel prices have come down and we are in the process of having nation wide tax cuts. All these factors are putting extra cash into the back pockets of everyone and will definitely help improve confidence within the market over the coming 12 months.
2 thoughts on “100 Auckland Properties Go To Auction In One Big Event.”
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Some transparency needed here with this mega auction as I’m sure the other 80 70 65 whatever vendors? didn’t know that the mastermind of this also had his own properties going under the hammer. Like others did he also contribute $2500 towards the marketing of each property, if so that’s fine. The concept and innovation is great. I’m not knocking tall poppies but c’mon …. tell it as it is!
I wrote this article a little prematurely it may seem. I only found out the facts of the agency interests midday today. But yes you are right in a way it does make a mockery of the event if it wasn’t done with total transparency.
However it is pretty clear that the market has spoken with how many sold under the hammer. The market is depressed and sales are low. Is it a good time to buy real estate in this country. I would like to say it is great but the fact is there are too many uncertainties to give a true representation.